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Rare earth metals Are Not the Same As Rare Industrial Metals
Start:
Feb 21, 2012 12:00 AM
End:
Feb 21, 2012 12:00 AM
Someone said articles using their company writers who often make reference to Rare Industrial or Technical Metals as Rare Earth elements. I must take some time and clear up the problem. I cope with RIMs and REEs on a daily basis. The two might both be considered metals that is where the similarities end. First we now have REEs or Rare earth metals. These metals consist of 17 metals, the Lanthanides plus Scandium and Yttrium about the periodic table of the elements. These metals will be in a powder form, making them hard to assay and store. One important factor that is often mentioned is that they aren't rare. This is true, but finding REEs in large deposits is hard. In the mining sector REE mines are standalone mines, that concentrate on the mining and refining of REEs exclusively. Currently around 97% of most REEs are mined and delicate in China. Historically REE mining and refining has been a dirty business, which has affected environmental surroundings across the mines. The weather Thorium and Uranium tend to be found along with the REEs in the deposits resulting in the slurry being slightly radioactive when processed. The use of highly toxic acids through the processing can also have serious environmental impact. Most companies want to open REE mines but they're meeting headwinds, as nations the ones don't want these mines within their backyard. During the last few years China has dramatically cut its export of REEs. This and the increased need for REEs have caused a meteoric surge in the value of these metals. The one area that not many people discuss may be the role from the media along with speculators in raising the value of REE ETF´s in particular. Going back couple years REEs were the rock stars from the metals. This news has calmed recently, however the supply and demand factors that caused the metals to soar remain set up. Recently China closed its BaoTao mine until REE prices stabilize. http://www.absolutewealth.com/rare-earth-element-stocks/ Rare Industrial Metals, RIM´s or Technical metals are another group entirely. The RIM´s comprise metals utilized in over 80% of products we use on every day basis. Without these metals you would not have the realm of the 21st century with this mobile phones, hybrid cars, lcd TV´s, highly efficient solar power and computers. A few of these metals include Indium, Tellurium, Gallium, Tantalum and Hafnium. These metals actually are rare when compared to the Rare Earth Metals that causes a great deal of confusion. These metals have been in a metallic form, stable and easy to hold and ship. RIM´s are mined being a by-product of base or common metal mining. For example Tellurium is really a by-product of Copper mining and Gallium can be a by-product of Aluminum and Zinc mining. The mining of the RIM´s currently are generally at the mercy of the markets for that base or common metal mining. When the Copper mines on the planet opt to cut production because of Copper losing value, this will have a huge impact on the amount of Tellurium which can be refined. Alternatives, as a result of previous small sized the RIM market, most companies don't want to take a position money into better technology to mine and refine these metals. The RIM´s would have to be valued higher to achieve the eye with the mining industry. When China cut exports of REEs in addition they cut exports of RIM´s. This put pressure about the value of these metals. RIM´s have raised in value, but nowhere close to the meteoric rise of the REEs. A lot of the metals increased in value around 47% this season and 25% so far next year. There is certainly still a lot of room for rise in the need for these metals (not depending on speculation like REEs) as demand is exceeding supply now as well as in the near future. http://www.absolutewealth.com/rare-earth-element-stocks/ As an example, when REEs and the stock market recently fell sharply the RIM´s reduced slightly in value but have held their own well. On a further note, based on Knut Andersen of Swiss Metal Assets, ¨Even though prices of the Rare Industrial Metals still rise in value, consumers could eventually only see a tiny increase in the cost of the end products, because there is so little of every metal utilized to produce the products. Also if the people can´t afford a smartphone they'll still buy less costly phones that also use the same Rare Industrial Metals¨. The need for RIM´s has risen sharply over time and will keep growing at astronomical rates. China, India, South usa and also the whole of Africa with billions of latest people are now buying and ultizing computers and cellphones to call only a few products. The long run is bright for the technologies as well as the Rare Industrial Metals that will make them work and for anyone that participates in stockpiling these metals now to fulfill future increased demand. Updated: February 20, 2012 03:05 PM PST
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